03-12-08 Council Agenda - Laserfiche WebLink

Home Browse Search

ICMA -RC The City of Little Canada provides a tax shelter through the International City Management Association - Retirement Corporation. This retirement savings program is optional. Employees may have both PERA and an ICMA -RC retirement account. If enrolled in PERA, the City does not match contributions to ICMA -RC. The City Administrator may opt -out of PERA for this program, subject to Minnesota Statutes. Employees may defer salary amounts up to the maximum allowed by IRS regulations. With the ICMA -RC plan, employees have the flexibility to increase, decrease, stop, and restart contributions as often as they wish, subject to the City's approval. Medical and Dependent Care Flexible Spending Plan (FSA) All regular full -time, regular part -time employees, and members of the City Council may defer salary amounts up to the maximums specified by the City Council into a Medical and Dependent Care Flexible Spending Account. The Medical and Dependent Care Flexible Spending Plan is administered for the City by a third party administrator and is subject to IRS regulations. Employees who have a IHIealth Savings Account (HSA may defer salary amounts for dependent care, dental and vision expenses only. Health Savings Account (HSA) Employees who opt for the high - deductible health insurance •Ian offered b the Cit It also be provided with a Health Savings Account. The City will contribute an amount, to be determined by the City Council, into the employee's account. Employees can defer salary amounts into their HSA account. The Health Savin ?s Account is administered for the City by a third party administrator and is subject to IRS regulations. The City will pay the participant account fee on behalf of the employee, while employees will be responsible for investment account service fees. Post Employment Health Care Savings Plan In an effort to help employees fund health insurance costs after employment, the City provides a Post - Employment Health Care Savings Plan through the International City Management Association - Retirement Corporation (ICMA -RC). All regular full -time, regular part -time employees working a minimum of 20 hours per week on average, with five (5) years of service, are automatically enrolled in this Plan. and - members -of- the -Git l -have -the ch ice-of opting- into -this Plan, but once an empleyee- er- member- ef-the Council elects -to participate, that eleetien is in'eveeable: Post - Employment Health Care Savings Accounts are can -be funded by • Employer contributions (see Severance Pay - Section 18); • Employer contributions equal to one -half adpercent (.5 %) of an employee's gross wages. e Employee salary reductions of one -half a percent (.5 %) of an employee's gross wages. including trreveeable- salary- eeduetio nual- dedieation-ef-prespeeti-ve vaeation pay (.;ee -Leave of-Ab0enee- Section-14)-; o P;mpleyee -vaeation pay balance at-separation-see-Severance-Pay-Section-18). 11 7